Appeals on Administrative Authorization Insurance Policy

In your real estate projects, you are increasingly confronted with regulations regarding building permits. Due to this legislation and the growing number of appeal procedures, there is a risk that your project be delayed and cannot be realized. With our ‘Appeals on Administrative Authorization Insurance Policy', you insure a project against the consequences of cancellation or restrictive adjustments resulting from appeals to the RVVB or the Council of State.

Certainty

A previously issued building permit for your construction project can still be revoked following a ruling by the RVVB or Council of State. This could have significant financial implications for you and your stakeholders.

With the ‘Appeals on Administrative Authorization Insurance Policy', major insurers guarantee financial loss when the project cannot be realized. This reassures investors, banks, and buyers, and also insures your development and construction costs.

What is insured?

The insurance reimburses the actual financial losses resulting from the cancellation of your project. The compensation consists of the following:

For project developers:

• We cover the difference between the paid construction-on-design costs and the amounts that buyers have already paid for the property
• Additionally, we consider other construction costs, such as potential extra expenses due to breach of contract, insurance or costs related to project financing
• In the event that the project needs to be demolished, our insurance also covers the demolition costs.

For private buyers:

• Before completion of the project, the insurer reimburses the amount that has actually been paid for insured item on the date of loss,  - multiplied by the compensation rate of 110% or 120%.
• After completion, buyers have two options :
  • If the buyer chooses to retain the unit, we offer a compensation of 20%
  • If the buyer decides not retain unit, we provide coverage of up to 120% of the total amounts already paid
• In the case of demolition, the buyer receives the reference price of the property multiplied by 110% or 120%.

For landowners:

We offer compensation based on the original land values minus the residual value, minus the amount that buyers have already paid for a share.

For investors:

The coverage is customized and can be tailored to the specific needs of the project. The insurance compensates you for the financial losses incurred by you as an investor.

The benefits

Acceleration

With an ‘Appeals on Administrative Authorization Insurance Policy', you don’t have to wait for the outcome of an appeal at the RVVB or Counsel of State. This speeds up your construction project: you can purchase the building land more quickly and start construction without delays. This supports the continuity of the construction work and the coordination with your contractors.

Financial security

Despite ongoing appeal procedures, you insure the purchase price of the land, financing with the bank, and potentially the units that you have not yet sold. Additionally, you can continue with your plans for marketing the project.

How can you get insured?

To make use of the ‘Appeals on Administrative Authorization Insurance Policy', follow these steps:

1. You will contact one of our advisors as soon as an appeal is filed against your permit at the RVVB or Counsel of State.  We can discuss whether your project is qualified.
2. If your project is qualified, a risk analysis is the next step. A specialized law firm will conduct tow independent audits of the permit and appeal procedures. This process will take a maximum of two months.
3. If the risk is acceptable for the insurers, we will create a customized insurance proposal for you.

What is the cost of the insurance?

The premium for an ‘Appeals on Administrative Authorization Insurance Policy' is approximately 1.5% of the insured value for real estate projects. You can determine the insured value yourself based on your needs, and we will tailer our work to meet your specific requirements. The premium depends on the size of the project and the risk you want to insure.